U.S. Consumers Significantly More Likely To Respond To Location-Based Mobile Ads Than Other Mobile Ad Types

April 23, 2010

Mobile Marketing Association – Luth Research Survey Finds 10 Percent of Cell Phone Owners Use Location Services at Least Once a Week New York, London, UK, Singapore & Sao Paulo: April 21, 2010 - The Mobile Marketing Association (MMA) (www.mmaglobal.com) and its official research partner, Luth Research (www.luthresearch.com), today released the latest Mobile Consumer Briefing, a monthly survey of U.S. adult consumers about their mobile marketing behaviors and opinions. Available exclusively to MMA members, the new survey shows that nearly one in four U.S. adult consumers uses mobile location services, with usage highest among Apple iPhone owners.

Based on Luth Research’s online panel, SurveySavvy™, each MMA U.S. Mobile Consumer Briefing collects answers from a demographically representative sample of more than 1,000 U.S. adult consumers. Conducted in mid-March, the new survey found that 91 percent of respondents have a cell phone and that 26 percent of that group has used a “map, navigation or some other mobile phone service that automatically determines your current location.”

Nearly half of those who noticed any ads while using location-based services took at least some action, indicating that consumers respond well to ads through location-based services. This was a significantly higher rate than for those who noticed advertisements while sending/receiving text messages (37 percent) and almost twice the rate of those who saw an ad while browsing Web sites (28 percent).

The survey’s other key findings include:

Ten percent of the cell phone owners surveyed use mobile location services at least once a week.

Sixty-three percent of Apple iPhone owners use location services at least once a week.

Adults ages 25-34 are frequent users of location services, with 22 percent using them at least once a week.

Respondents said they use these services most frequently to “locate nearby points of interest, shops or services.”

Consumers are interested in allowing their phone to automatically share their location in exchange for perks, such as free use of mobile applications and mobile coupons.

“By law, mobile phones sold over the past several years have included GPS or another location technology, creating an enormous addressable market for location-based services,” said Peter A. Johnson, vice president of market intelligence, MMA, and author of the study. “The Consumer Briefing shows that consumers believe location-based services offer them significant benefits in functionality and relevance. Consumers’ significant adoption and appreciation of location-based services opens up enormous new opportunities for brands and agencies to leverage this unique virtue of the mobile channel.”

“Location-based services are a compelling audience engagement feature unique to the mobile platform. By providing more location-aware services and products, brands can now create a much more intimate presence in consumers’ life,” said Jacqueline Rosales, EVP, Business Development & Client Service, Luth Research.

Conducted in mid-March, the survey asked a variety of questions, including:

• Frequency of using various mobile media (e.g., mobile Web, apps, SMS)• Frequency of using the “current location” feature for various tasks• Ad awareness and response while using location-based or other mobile phone features• Interest in allowing current location to be automatically shared if it enabled various mobile phone capabilities• Manufacturer of current cell phone• Current cellular service provider

Available exclusively to MMA members, each MMA Consumer Briefing includes a 2- to 3-page executive summary, all survey questions and up to 50 tables of detailed results. Survey responses are provided both in aggregate and in cross-tabulation by standard audience demographics, such as age, gender and income, as well as wireless carrier and handset manufacturer.

About the Mobile Marketing Association (MMA)The Mobile Marketing Association (MMA) is the premier global non-profit trade association established to lead the growth of mobile marketing and its associated technologies. The MMA is an action-oriented organization designed to clear obstacles to market development, establish mobile media guidelines and best practices for sustainable growth, and evangelize the use of the mobile channel. The more than 700 member companies, representing over forty countries around the globe, include all members of the mobile media ecosystem. The Mobile Marketing Association’s global headquarters are located in the United States and it has regional chapters including North America (NA), Europe (EUR), Latin America (LATAM), Middle East & Africa (MEA) and Asia Pacific (APAC) branches. For more information, please visit www.mmaglobal.com.

About Luth ResearchFounded in 1977, Luth Research is a San Diego-based market research firm that provides clients with forward-thinking market intelligence that moves businesses ahead in a competitive economy. Using its proprietary technology, data collection resources and research methods, including its online panel, SurveySavvyTM, the company helps businesses track emerging trends, measure message effectiveness and understand how consumers think and act. For more information, call (800) 465-5884.

About

The MMA is the world’s leading global non-profit trade association comprised of more than 800 member companies, from nearly fifty countries around the world. MMA Member companies hail from every faction of the mobile media ecosystem. Our consortium includes brand marketers, agencies, enabling technologies, media companies and others. The MMA’s mission is to accelerate the transformation and innovation of marketing through mobile, driving business growth with closer and stronger consumer engagement.